Hint: It’s not 20% — and it might be less than you think.

If you’ve ever delayed buying a home because you “need to save 20%,” you’re not alone. That’s one of the most common myths out there — and it’s stopped a lot of people from stepping into homeownership sooner.

The truth is, most first-time buyers put down far less — and there are more flexible options than ever before.

Let’s break down what a down payment really is, how much you actually need, and how to choose the right option for your financial goals.

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🔍 What Is a Down Payment, Exactly?

A down payment is the portion of the home’s purchase price that you pay upfront, out of pocket. The rest is financed through your mortgage.

For example:

• If you’re buying a $350,000 home
• And you put 5% down
• That’s $17,500 upfront

The remaining $332,500 is your loan amount.

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🏠 Do You Really Need 20%?

No — and most people don’t put that much down.

Here’s the national average for first-time buyers:
🧾 About 6–7% down

You don’t need 20% to qualify, and putting less down can still be a very smart move — especially if it helps you:

• Keep savings in the bank
• Buy sooner instead of waiting years
• Take advantage of appreciation sooner

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🔑 Down Payment Options for First-Time Buyers

Let’s look at some flexible choices:

✅ FHA Loan

• Minimum: 3.5% down
• Great for buyers with lower credit or limited savings
• More forgiving DTI and credit requirements

✅ Conventional Loan (First-Time Buyer Programs)

• Minimum: 3% down (HomeReady®, Home Possible®)
• Competitive terms with strong credit
• PMI can be removed later

✅ VA Loan

• 0% down
• For eligible veterans, active-duty service members, and spouses
• No mortgage insurance required

✅ USDA Loan

• 0% down
• For eligible rural properties and income levels
• Low monthly costs and 100% financing

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💬 “Should I Put More Down If I Can?”

It depends on your long-term goals.

More Down = Lower monthly payment, possibly better rate, and less owed over time.
Less Down = More liquidity, earlier entry into the market, and faster access to equity gains.

It’s about balance — not benchmarks.

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🧠 Pro Insight: Don’t Empty Your Account

One of the biggest mistakes buyers make is draining every dollar for the down payment — and having nothing left for emergencies, furniture, or home maintenance.

A great lender (hi 👋) will help you structure your down payment around both your mortgage approval and your lifestyle needs.

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🏢 Why It Matters Who You Work With

Some lenders push cookie-cutter options. Others (especially brokers) might submit your loan to the lowest bidder and give you little transparency in the process.

At PRMI, we’re a direct lender — meaning we control most of the process in-house. No middlemen, no guessing games. Just clear options, honest numbers, and real support.

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👇 Want to See What You Could Put Down?

We’ll walk you through loan programs, show you what’s possible, and help you build a smart strategy — no pressure, just facts.